How Do You Mine for Bitcoins?

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Dec. 20 (Bloomberg) -- Bloomberg's Erik Anderson and Matt Miller report on the bitcoin mining process. They speak on Bloomberg Television's "In The Loop." (Source: Bloomberg)



There are anderson works on the other side of the building, he is a software developer for bloomberg.

We ran into each other on the sixth floor.

You mentioned to me that you have been mining for a while.

Yes, i have been mining for about six months.

When you say these technical terms, a lot of people don't understand.

Mining has gotten steadily more and more difficult.

You could have done it with just a laptop computer with a computer processing units and then you needed a graphics card to do it.

This has an a6 chip in it.

I was talking to a guy who has this giant, it looks like an old pentium computer box.

The next generation should be 30 times more powerful.

As the difficulty gets higher and higher you need a larger system to be competitive with them.

But a lot of people say you cannot make a profit mining coins.

If you do and you still manage to work full time here at bloomberg.

How do you do it the e -- how do you do it?

You literally plugs in and walk away.

It is a concern to some people, the power costs.

How much can one line from something like this and how much does one pay for the energy costs?

If i'm going to run this up here, it is $16 a month.

On a next general, this will be about $200 per month if i was going to do it here in the greater new york area.

Those are the costs.

How much bitcoin can you get out of the network?

About a bitcoin a day.

You make your money back within a week?

A week to two weeks.

And the power costs, you could just do it here at work.

I would get in trouble for that.

What you do with the corn when you get it?

You maker -- you are making 30 bitcoins per month.

What do you do with that?

You would trade for another virtual currency or you can put it on an exchange and put in sells and buys.

When it gets too high it sells off, when it gets lower, there applies to -- there are buys to it.

It is a profitable operation.


Eric anderson, bloomberg employee.

You have some breaking news.

Oracle is buying a company in san francisco for $27 per share.

This is a stock that is already up 220%. this calm -- the stock ticker mk g. oracle making this acquisition.

They have been on a buying screw -- a buying spree of companies.

They have done 24 acquisitions in the last three or four years.

They are really consolidating a lot of businesses.

It is going so rapidly.

-- growing so rapidly.

This text has been automatically generated. It may not be 100% accurate.


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